Similarly, if he elects to annuitize
a variable deferred annuity on a fixed annuity payout arrangement, and if the total value of theaccumulation unitsin his contract, at the time of annuitization, is $100,000, he will receive that same income, assuming the same annuity payout factor.
Walsh says many participants annuitize
only enough assets to pay for their core living expenses, and they let the rest of their savings continue to accumulate.
By comparison, the person who annuitizes
and invests the difference has the entire "difference" to liquidate without at all threatening his lifetime guarantee of $1,000 a month.
Aside from theoretical interest in the question of who annuitizes
and why, annuitization has become an increasingly visible issue within retirement policy circles.
The GMIB guarantees what the minimum amount of monthly income will be, once the policyholder annuitizes